Are you drained from not being able to afford each month for auto insurance? You are in the same boat as many other drivers. Multiple insurance companies compete for your insurance dollar, so it can be very hard to choose a company to find the absolute lowest rate possible.
Some providers don’t always publicize every discount they offer very well, so below is a list a few of the more common and the harder-to-find discounts that you can inquire about if you buy car insurance online.
It’s important to understand that many deductions do not apply to the entire cost. Most only reduce the cost of specific coverages such as comprehensive or collision. So when the math indicates it’s possible to get free car insurance, insurance companies wouldn’t stay in business. Any amount of discount will positively reduce your premiums.
Companies and a partial list of their discounts are detailed below.
Double check with every prospective company how you can save money. Discounts may not be offered everywhere. To find companies that offer many of these discounts, click here to view.
When it comes to choosing adequate coverage, there isn’t really a “best” method to buy coverage. Everyone’s needs are different so your insurance needs to address that. For instance, these questions could help you determine if you would benefit from professional advice.
If you can’t answer these questions but one or more may apply to you, you might consider talking to an agent. To find lower rates from a local agent, fill out this quick form or click here for a list of auto insurance companies in your area. It only takes a few minutes and may give you better protection.
Consumers can’t get away from ads that promise big savings by companies like Progressive, Allstate and GEICO. They all seem to try to convey promises that you’ll save big just by moving your car insurance coverage to their company.
How does every company cost less than your current company? Here is how they do it.
Many companies give the cheapest rates for the type of insured that earns them the most money. One example of a profitable customer may be between 30 and 50, has no driving citations, and drives a safe vehicle. Anybody that hits that “sweet spot” will get very good rates and will probably cut their rates if they switch.
Insureds who don’t qualify for those standards will be quoted more expensive rates and this results in business not being written. If you pay attention, the ads say “drivers who switch” not “everyone who quotes” save money. That’s why insurance companies can confidently make claims that they all have the best prices.
Because of this risk profiling, drivers must compare rate quotes every year. It’s not possible to predict with any certainty which company will give you the biggest savings.
Understanding the coverages of a insurance policy aids in choosing appropriate coverage and the correct deductibles and limits. Policy terminology can be ambiguous and coverage can change by endorsement. These are typical coverage types offered by insurance companies.
UM/UIM (Uninsured/Underinsured Motorist) coverage
Uninsured or Underinsured Motorist coverage provides protection from other motorists when they are uninsured or don’t have enough coverage. It can pay for injuries to you and your family and also any damage incurred to your Chevy Lumina Minivan.
Since a lot of drivers have only the minimum liability required by law, their limits can quickly be used up. That’s why carrying high Uninsured/Underinsured Motorist coverage is very important. Usually the UM/UIM limits do not exceed the liability coverage limits.
This coverage provides protection from damages or injuries you inflict on other’s property or people. This insurance protects YOU from legal claims by others. It does not cover your own vehicle damage or injuries.
Liability coverage has three limits: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. As an example, you may have limits of 50/100/50 that means you have a limit of $50,000 per injured person, a limit of $100,000 in injury protection per accident, and a total limit of $50,000 for damage to vehicles and property. Another option is one limit called combined single limit (CSL) which provides one coverage limit with no separate limits for injury or property damage.
Liability can pay for claims such as medical expenses, medical services and loss of income. How much liability should you purchase? That is a personal decision, but consider buying as high a limit as you can afford.
Medical payments and PIP coverage
Personal Injury Protection (PIP) and medical payments coverage provide coverage for expenses for things like dental work, pain medications, doctor visits and EMT expenses. The coverages can be used to fill the gap from your health insurance policy or if you lack health insurance entirely. Coverage applies to you and your occupants in addition to getting struck while a pedestrian. PIP is not universally available and gives slightly broader coverage than med pay
Comprehensive auto coverage
This coverage covers damage caused by mother nature, theft, vandalism and other events. A deductible will apply and then insurance will cover the rest of the damage.
Comprehensive insurance covers claims like damage from a tornado or hurricane, hail damage, a broken windshield, vandalism and damage from flooding. The maximum payout your insurance company will pay is the cash value of the vehicle, so if your deductible is as high as the vehicle’s value consider dropping full coverage.
Collision coverage protection
This covers damage to your Lumina Minivan from colliding with an object or car. You will need to pay your deductible then your collision coverage will kick in.
Collision coverage pays for claims such as scraping a guard rail, crashing into a ditch, sustaining damage from a pot hole and colliding with another moving vehicle. Collision coverage makes up a good portion of your premium, so consider dropping it from vehicles that are older. You can also bump up the deductible in order to get cheaper collision rates.
Lower-priced auto insurance can be found on the web and also from your neighborhood agents, so you need to shop car insurance with both to have the best selection. Some insurance companies may not offer the ability to get quotes online and many times these smaller providers only sell coverage through local independent agencies.
As you prepare to switch companies, you should never buy lower coverage limits just to save a few bucks. In too many instances, an insured dropped comprehensive coverage or liability limits only to regret at claim time they didn’t purchase enough coverage. Your strategy should be to get the best coverage possible at the best cost, but don’t skip important coverages to save money.
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